The government on Wednesday announced the launch of the first tranche of inflation-indexed bonds (IIBs) worth Rs.1,000 crore on June 4 through auctions to wean away household savings from gold by providing an alternative avenue for hedging against the price spiral for a positive real return on investment.

“The Government has announced the sale of new Inflation Indexed Government Stock-2023 for a notified amount of Rs.1,000 crore through yield-based auction...” the Finance Ministry said in a statement here.

The auctions will be conducted by the RBI in Mumbai on June 4 using the “uniform price” method, it said. The results of the auction of IIBs, which would be part of the government’s borrowing programme for the first-half of 2013-14, are to be announced on June 4 itself and the successful bidders would have to make the payment the following day.

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